Full Report - Subregional Office for East and North-East Asia - escap

ECONOMIC AND SOCIAL SURVEY OF ASIA AND THE PACIFIC 2013
By highlighting these specific elements, attention
is drawn in chapter 4 to the fact that rather than
focusing exclusively on the economic pillar, policy
attention must also be devoted to elements of
the social and environmental pillars. Ensuring
that public services are made available to all is
a critical element in making development more
inclusive. Additionally, strengthening the social and
environmental pillars also fortifies the economic
pillar, thereby making development more sustainable.
For instance, investments in health, education and
social protection will strengthen the economic pillar
by increasing productivity through a healthier and
more educated labour force and by reducing the
precautionary motive for saving and thus increasing
the amount of capital available for investment. As
another example, broadening access to energy
through investments in renewable energy and in
technologies to improve energy efficiency contribute
to reducing the impact of economic growth on energy
prices and carbon emissions. These investments
could also offer opportunities for technological
innovations, business development and employment
in promising “new economy” industries, thereby
fostering development.
The exercise in chapter 4 shows that the required
public investment for the set of policies to enhance
resilience and inclusiveness would range between 5
and 8% of GDP for most of the countries analysed.
Within these estimates, the contribution of individual
policies varies, reflecting different demographic and
economic characteristics. For example, the required
expenditure for providing a job guarantee for a limited
number (100) of days at the wage rate equivalent to
respective national poverty lines ranges between 1%
of GDP in China and the Russian Federation and
8% of GDP in Bangladesh. Similarly, ensuring income
security to older persons would require between 1
and 4% of GDP for most countries. Such investment
requirements (1) are within the affordable range for
most Governments, (2) will remain fiscally sustainable
and (3) will not destabilize the macroeconomy even
with debt financing due to the reinforcing impact
that greater investment and expenditure on inclusive
development has on sustainable growth. In the
chapter, it is argued that the region will benefit from
stronger productivity growth underpinned by stronger
social and environmental pillars.
These results are very encouraging for fulfilling
Governments’ commitment to full employment,
enshrined in the United Nations Charter (article 55), 7
as well as their commitments to internationally agreed
development goals derived from United Nations
conferences and summits since the early 1990s.
Therefore, forward-looking macroeconomic policies
are needed not only to enhance the resilience
of the people and inclusiveness of sustainable
development but also to enhance human security
and deliver on the right to development. Finally,
the public policies discussed in this Survey can
strengthen the social glue that binds communities
and enhances citizenship.
Endnotes
1
See General Assembly resolution 55/2 of 12 February
2010.
2
See General Assembly resolution 66/288 of 27 July
2012.
3
See General Assembly resolution 65/1 of 22 September
2010.
4
See for example Fei, Ranis and Kuo (1979), Adelman
and Robinson (1978) and Campos and Root (1996).
5
See General Assembly resolution 65/1 of 19 October
2010.
6
See http://southwest-sro.unescap.org/oes/statements/
2010/ST20100421-social-protection-agenda.html.
7
United Nations, Charter of the United Nations and
Statute of the International Court of Justice (San
Francisco, 1945). Available from http://treaties.un.org/
doc/Publication/CTC/uncharter.pdf.
10